S*1202 Session 108 (1989-1990)
S*1202(Rat #0543, Act #0456 of 1990) General Bill, By Senate Education
A Bill to amend Title 59, Code of Laws of South Carolina, 1976, relating to
education, by adding Chapter 102 so as to provide for the regulation of agent
contracts and other activities and relations between athlete agents and
student athletes, to provide for the registration of athlete agents, to
require student athletes to provide written notification to certain persons
upon entering into a contract with an athlete agent, to require agent
contracts between athlete agents and student athletes to contain certain
warning provisions, to provide that failure to include the warning provision
renders the contract void, to authorize civil damages for certain violations,
to provide criminal penalties for certain violations; to amend Section
37-6-508, relating to the Deputy Administrator of the Department of Consumer
Affairs, so as to authorize the designation of those deputies as the
Administrator of the Department determines necessary; and to amend Section
16-1-10, relating to the list of crimes classified as felonies, so as to add
the offenses in Chapter 102 above which are felonies to this list.-amended
title
02/06/90 Senate Introduced, read first time, placed on calendar
without reference SJ-13
02/07/90 Senate Read second time SJ-24
02/08/90 Senate Read third time and sent to House SJ-27
02/13/90 House Introduced and read first time HJ-10
02/13/90 House Referred to Committee on Labor, Commerce and
Industry HJ-10
04/05/90 House Committee report: Favorable with amendment Labor,
Commerce and Industry HJ-8
04/18/90 House Amended HJ-21
04/18/90 House Read second time HJ-25
04/19/90 House Read third time and returned to Senate with
amendments HJ-7
04/24/90 Senate Concurred in House amendment and enrolled SJ-4
05/01/90 Ratified R 543
05/07/90 Signed By Governor
05/07/90 Effective date 05/07/90
05/07/90 Act No. 456
06/12/90 Copies available
(A456, R543, S1202)
AN ACT TO AMEND TITLE 59, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING
TO EDUCATION, BY ADDING CHAPTER 102 SO AS TO PROVIDE FOR THE REGULATION
OF AGENT CONTRACTS AND OTHER ACTIVITIES AND RELATIONS BETWEEN ATHLETE
AGENTS AND STUDENT ATHLETES, TO PROVIDE FOR THE REGISTRATION OF ATHLETE
AGENTS, TO REQUIRE STUDENT ATHLETES TO PROVIDE WRITTEN NOTIFICATION TO
CERTAIN PERSONS UPON ENTERING INTO A CONTRACT WITH AN ATHLETE AGENT, TO
REQUIRE AGENT CONTRACTS BETWEEN ATHLETE AGENTS AND STUDENT ATHLETES TO
CONTAIN CERTAIN WARNING PROVISIONS, TO PROVIDE THAT FAILURE TO INCLUDE
THE WARNING PROVISION RENDERS THE CONTRACT VOID, TO AUTHORIZE CIVIL
DAMAGES FOR CERTAIN VIOLATIONS, TO PROVIDE CRIMINAL PENALTIES FOR CERTAIN
VIOLATIONS; TO AMEND SECTION 37-6-508, RELATING TO THE DEPUTY
ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS, SO AS TO AUTHORIZE
THE DESIGNATION OF THOSE DEPUTIES AS THE ADMINISTRATOR OF THE DEPARTMENT
DETERMINES NECESSARY; AND TO AMEND SECTION 16-1-10, RELATING TO THE LIST
OF CRIMES CLASSIFIED AS FELONIES, SO AS TO ADD THE OFFENSES IN CHAPTER
102 ABOVE WHICH ARE FELONIES TO THIS LIST.
Be it enacted by the General Assembly of the State of South Carolina:
Regulation of athlete agents, contracts, and relations with athletes
SECTION 1. Title 59 of the 1976 Code is amended by adding:
"CHAPTER 102
Athlete Agents and Student Athletes
Section 59-102-10. As used in this chapter:
(1) 'Agent contract' means a contract or agreement pursuant
to which a student athlete authorizes an athlete agent to represent him
in the marketing of his athletic ability or reputation in a sport.
(2) 'Athlete agent' means a person who, directly or
indirectly, recruits or solicits a student athlete to enter into an agent
contract, or who for a fee procures, offers, promises, or attempts to
obtain employment for a student athlete with a professional sports team
or as a professional athlete.
(3) 'Student athlete' means an athlete who practices for or
otherwise participates in intercollegiate athletics at a college or
university that is located in this State.
Section 59-102-20. (A) Each athlete agent shall register
biennially with the Department of Consumer Affairs on forms to be
provided by the department and, at the same time, pay to the department
a registration fee of three hundred dollars, for which the department
shall issue a certificate of authority entitling the holder to operate
as an athlete agent for two years. The department may revoke or suspend
the registration of an athlete agent for cause or for a violation of any
provision of this chapter.
(B) When the business address of an athlete agent operating
in this State is changed, the agent shall notify the department within
thirty days after the change of address.
(C) It is unlawful for a person to operate as an athlete
agent unless he is registered as provided in this section. A person who
violates this section is guilty of a felony and, upon conviction, must
be punished by a fine of five thousand dollars or by imprisonment for
five years, or both.
Section 59-102-30. (A) A student athlete who is subject to the
rules and regulations of the National Collegiate Athletic Association,
the National Association for Intercollegiate Athletics, or the National
Junior College Athletic Association, who has not completed his last
intercollegiate contest including postseason games for the applicable
sport, and who enters into an agent contract with an athlete agent or a
contract pursuant to which an athlete is employed as a professional
athlete, shall notify the athletic director or the president of the
college or university in which he is enrolled and the Administrator of
the Department of Consumer Affairs that he has entered into such a
contract. Written notification of entering into a contract must be given
before practicing for or participating in an athletic event on behalf of
a college or university or within seventy-two hours after entering into
the contract, whichever occurs first. A student athlete who fails to
provide this notification is guilty of a misdemeanor and, upon
conviction, must be punished by a fine of one thousand dollars or by
imprisonment for one year, or both.
(B) An athlete agent who enters into an agent contract with
a student athlete who is subject to the rules and regulations of the
National Collegiate Athletic Association, the National Association for
Intercollegiate Athletics, or the National Junior College Athletic
Association shall notify the athletic director or the president of the
college or university in which the student athlete is enrolled and the
Administrator of the Department of Consumer Affairs that the student
athlete has entered into such a contract. Written notification of the
contract must be given before the student athlete's practicing for or
participating in an athletic event on behalf of a college or university
or within seventy-two hours after entering into the contract, whichever
occurs first. An athlete agent who fails to provide this notification
is guilty of a felony and, upon conviction, must be punished by a fine
of five thousand dollars or by imprisonment for five years, or both.
(C) A student athlete or athlete agent who enters into a
contract before October 1, 1990, is subject to the notification
requirements of this section as of October 1, 1990. Thereafter, they are
subject to these notification requirements immediately in the manner
required by this section.
(D) An agent contract between a student athlete and an
athlete agent must have a notice printed near the space for the student
athlete's signature which must contain the following statement in
ten-point bold-faced type:
'WARNING: IF YOU AS A STUDENT ATHLETE SIGN THIS CONTRACT, YOU MAY
LOSE YOUR ELIGIBILITY TO COMPETE IN INTERCOLLEGIATE ATHLETICS. PURSUANT
TO SOUTH CAROLINA LAW, YOU SHALL NOTIFY THE ATHLETIC DIRECTOR OR
PRESIDENT OF YOUR COLLEGE OR UNIVERSITY AND THE ADMINISTRATOR OF THE
DEPARTMENT OF CONSUMER AFFAIRS IN WRITING BEFORE PRACTICING FOR OR
PARTICIPATING IN AN ATHLETIC EVENT ON BEHALF OF A COLLEGE OR UNIVERSITY
OR WITHIN SEVENTY-TWO HOURS AFTER ENTERING INTO THIS CONTRACT, WHICHEVER
OCCURS FIRST. FAILURE TO PROVIDE THIS NOTICE IS A CRIMINAL OFFENSE.'
(E) An agent contract entered into between a student athlete
and an athlete agent who fails to provide the notification required by
this section is void and unenforceable.
(F) A student athlete or athlete agent who enters into an
agent contract and fails to provide the notification required by this
section is liable for damages to the college or university in which the
student athlete is enrolled that result from the student athlete's
subsequent ineligibility. In addition to damages, if any, awarded
pursuant to this section, damages may be assessed in an amount equal to
three times the value of the athletic scholarship furnished by the
institution to the student athlete during the student athlete's period
of eligibility.
(G) Within ten days after the date on which the contractual
relationship between the athlete agent and the student athlete arises or
after notification of the contractual relationship is received by the
athletic director or president of the college or university in which the
student is enrolled and the Administrator of the Department of Consumer
Affairs, whichever occurs later, the student athlete has the right to
rescind the contract or any contractual relationship with the athlete
agent by giving notice in writing of his intent to rescind. The
rescission is effective upon repayment by the student athlete to the
athlete agent of any monetary amounts paid to the student athlete by the
athlete agent, exclusive of travel, lodging, meals, and entertainment,
or reimbursement for these items, furnished by the athlete agent to the
student athlete. The student athlete may not effect a waiver of his
right to rescind, and an attempt to do so is prohibited and
unenforceable.
(H) Postdating of agent contracts is prohibited, and a
postdated contract is void and unenforceable. Execution of a postdated
contract is a violation of this chapter, and an athlete agent committing
the violation is subject to the penalty provisions of Section
59-102-20(C). A student athlete committing the violation is subject to
the penalty provisions of Section 59-102-30(A).
Section 59-102-40. An agent may not:
(1) publish or cause to be published false or misleading
information or advertisements nor give any false information or make
false promises to an athlete concerning employment;
(2) accept as a client a student athlete referred by an
employee of or a coach for a college or university located in this State
in exchange for the rendition of free legal services, the rendition of
legal services for a reduced fee, or any other consideration;
(3) enter into an agreement, written or oral, by which the
athlete agent offers anything of value to an employee of or a coach for
a college or university located in this State in return for the referral
of student athlete clients by that employee or coach;
(4) offer anything of value to induce a student athlete to
enter into an agreement by which the agent will represent the student
athlete. Negotiations regarding the agent's fee is not considered an
inducement;
(5) conduct business as an athlete agent if his registration
is suspended.
Section 59-102-50. The Department of Consumer Affairs may
promulgate regulations necessary to implement and enforce this
chapter."
Addition of felonies
SECTION 2. Section 37-6-508 of the 1976 Code is amended to read:
"Section 37-6-508. The administrator, with the approval of the
commission, may designate such deputies as he determines necessary to
assist him in performing the duties he is required to perform under this
title. Any deputy shall satisfy and meet the same qualifications,
including bond, required for the administrator."
Deputies authorized
SECTION 3. The unlawful acts provided in Chapter 102, Title 59 of
the 1976 Code which are felonies are added to the list of crimes which
are classified as felonies pursuant to Section 16-1-10 of the 1976 Code.
Time effective
SECTION 4. This act takes effect upon approval by the Governor.
Approved the 7th day of May, 1990.
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